Chapter 24 Review: Closing

Question 1

The Consumer Financial Protection Bureau (CFPB) requires two new documents: the __________ and the ____________ for transactions involving loans where the borrower is purchasing a one to four family residential property in a federally related loan and vacant land

Answer 1

Loan Estimate

Closing Disclosure

Question 2

The disclosure of __ pieces of information constitutes an application for a loan

Answer 2

6

Question 3

The Loan Estimate provides disclosures that help consumers understand the key features, costs, and risks of the mortgage loan for which they are applying. The lender must provide it to the consumer no later than the ____________ after loan application

Answer 3

third business day

Question 4

There are three categories of costs disclosed on the Loan Estimate: zero _____, 10% ______, and _______ permitted

Answer 4

tolerance
tolerance
variations

Question 5

The Loan Estimate is only good for __ business days

Answer 5

10

Question 6

The lender is responsible for having the Closing Disclosure to the borrower at least _ business days before ________ of the loan. Sundays and holidays do not count as business days

Answer 6

3

consummation

Question 7

After the closing, the title company records the new owner’s _____ and ______ at the Registry of Deeds

Answer 7

deed

mortgage

Question 8

The fiduciary duty of ___________ survives the closing

Answer 8

confidentiality